Question
The most recent financial statements for Cardinal, Inc., are shown here: Income Statement Balance Sheet Sales $ 30,200 Assets $ 71,600 Debt $ 35,300 Costs
| The most recent financial statements for Cardinal, Inc., are shown here: |
| Income Statement | Balance Sheet | ||||||||||
| Sales | $ | 30,200 | Assets | $ | 71,600 | Debt | $ | 35,300 | |||
| Costs | 18,300 | Equity | 36,300 | ||||||||
| Taxable income | $ | 11,900 | Total | $ | 71,600 | Total | $ | 71,600 | |||
| Taxes (24%) | 2,856 | ||||||||||
| Net income | $ | 9,044 | |||||||||
| Assets and costs are proportional to sales. Debt and equity are not. A dividend of $3,500 was paid, and the company wishes to maintain a constant payout ratio. Next years sales are projected to be $33,220. |
| What is the external financing needed? |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
The Risk Modeling Evaluation Handbook Rethinking Financial Risk Management Methodologies In The Global Capital Markets
Authors: Greg Gregoriou, Christian Hoppe, Carsten Wehn
1st Edition
0071663703, 978-0071663700
